Question

Which of the following will shift the supply curve to the left?

a. An increase in the price of inputs to production.
b. A change in consumer tastes and preferences.
d. Government deregulation of production.

Answer 1

The correct answer is option a.

Step-by-step explanation:

An increase in the price of inputs of production will cause an increase in the cost of production. The firm will now be able to produce less at the same cost.

As a result, the supply of the commodity will decline. this causes the supply curve to shift to the left further causing an increase in the price of the product.